RedFox Blog: Satisfied ?
Post 777 28/12/20
Most of the blogs this week will be on the so called trade deal done between the UK and the EU which was done on Christmas eve. Firstly I did the communication that the EU put out about the deal. And it would surprise you that what the UK prime Minister is saying is not true. The UK will be economically worse off than now under this agreement. The fundamental thing about it that there are no service industry agreements. Something that the UK economy is based on. Was this deliberate only the Prime Minister knows the answer.
The agreement only provides trade that is manufacturing and that the main core industry in the UK which is financial services will lose access to European markets come Friday. There is mention of the penalties of deviating from the European standards on Environment, Social and workers rights. This penalty will be in the form of tariffs. So if we stray away from the working time directive the cost of imported dairy products will go up. This will punish us through competition. No level playing field then we lose. And the economy will suffer.
Loophole Agreement
No agreement is ever completed to the full satisfaction of both parties. The agreement signed by both the EU and the UK is very thin and only handles the basics. There will be negotiating a new agreement. The UK has walked away from a deal that will harm everything it supposed to protect. But the citizens of the EU that live in the UK will not be affected by any changes. But UK residents will have to live with the changes the law will bring. There are many loopholes in the agreement but those are on the EU side not on the UK’s. There of course will be divergence but only the UK citizens will notice the change.
It has been a cave in by the UK government because it knew that a no deal scenario was not in its best interest. It did hang on hoping the EU will cave in but it did not. The UK Prime Minister claimed that the UK held all the cards. But this was a lie. It was the EU that held all the cards. Seeing the chaos the closing of the UK-French border reminded the UK that it was the Island and the EU was the mainland. The agreement falls short of the claims and the UK government knew that. But Brexit had to be done. But now the pieces will have to be made to work.